UK Defence Evaluation & Research Agency (DERA) Set to Become a PPP

The UK Government's Defence Evaluation & Research Agency, whose 12,000 personnel and $1.6 billion annual turnover make it the largest research organization in Europe, is now set to become a PPP (public, private partnership) with possible flotation sometime next year.

DERA's chief executive Sir John Chisholm, in an exclusive interview with Aviation Week's Show News, said a final period of formal consultations with staff, unions and other stakeholders had concluded in June, and he was hopeful the Government would be making an early pronouncement around Farnborough 2000 time, about the future shape of his internationally respected MoD agency.

DERA is here at the show with what he describes as "a few snippets from the 11,000 projects in 250 separate areas of technology with which we have been concerned over the past year."

These are developments in cockpit simulation and micro-satellites, and a new generation of fast-jet helmets.

The Agency's scope encompasses most of the MoD's non-nuclear research, technology, test and evaluation establishments; however, its scientists and experts, many of them internationally acclaimed, work in a dozen distinct industrial, commercial and environmental sectors as well as defense and aerospace.

Nevertheless, Sir John acknowledges that several collaborative partners-notably in the USA-have objected strongly to any prospect of international investors with defense interests becoming too closely involved in DERA activities.
He is adamant that there is not a chance of that happening.

To allay these concerns, and for the obvious strategic reasons, he says the preferred option is that the present Agency will be separated into two bodies, with the Government retaining a smaller, but still world class organization embracing such sensitive elements as the Chemical & Biological Defence sector at Porton Down.

The major part, some 75% of DERA's establishments and core capabilities, will create the PPP, and continue providing scientific and technical advice, problem solving, consulting engineering and research to customers internationally.

"A most important point for the future of this new enterprise" says Sir John, "is that its independence and impartiality is safeguarded and guaranteed, which is why the Government has said it will retain a golden share.

"There have been concerns that somehow DERA will be transmogrified into an industrial defense company like many of those others out there in the market place. Right now I can say it will not.

"Our strength and place in the market depends on an ability to provide customers with advice which is not distorted by an interest in manufacturing. So although our organization knows about defense systems for example, it does not, and will not make any.

"The Government has made clear that the objective is to bring in investors who are not defense manufacturers, though who are appropriate people for ownership of equity in a substantial research organization like ours; in any case, they will not be controlling owners."

He points out, however, that the new company should benefit from the greater freedom and resources, to flourish in new areas, and to diversify the great wealth of knowledge it has built up over many years.

He says "It is our best opportunity to exploit our technology, in its transfer to people whose expertise is to make products for the commercial world, but with our continuing to retain an interest in its development.

He instances the first ever equity joint venture between a British Government agency and the private sector at the beginning of this year, when DERA and NXT PLC formed 2020Speech Ltd., , a 50-50 owned enterprise to capitalize on the forecast $8 billion speech technology market.

DERA's Speech Research Unit has been at the forefront of speech recognition technology for 30 years, mostly until now, on behalf of the MoD.

DERA has in fact just announced a joint venture with Equipe to bid for the Eurofighter (ASTA) Aircrew Synthetic Training Aids (Visuals) contract.

"You can expect a series of deals of a similar nature over the next year," Sir John Chisholm volunteers, but he is decidedly reticent about any research to date for a thrusting title for his new public private partnership enterprise.